Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Credit default swap monitor: Venezuela is the world's riskiest debt

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Places » Latin America Donate to DU
 
ChangoLoa Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-07-10 06:26 AM
Original message
Credit default swap monitor: Venezuela is the world's riskiest debt
Venezuela is deemed the world's riskiest sovereign credit, while Argentina moved to the second place in the ranking of countries whose debt is the costliest to insure against a possible default, credit default swap monitor CDS DataVision said on Tuesday.

CMA's quarterly survey of credit default swaps (CDS), which is the cost to insure against default or restructuring of debt, found Venezuela's sovereign debt insurance costs continue to be the highest, after it surpassed Ukraine in December.

Venezuela devalued its currency in January and inflation is about 25 percent.

Venezuela's CDS are close to 950 basis points (bps), meaning it costs USD 950,000 a year for five years to insure USD 10 million in sovereign debt.

However, for the first time since the start of the global financial crisis, no sovereign CDS is trading above 1,000 basis points, Reuters reported.

Link:
http://english.eluniversal.com/2010/04/06/en_eco_esp_cr...
Printer Friendly | Permalink |  | Top
protocol rv Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Apr-07-10 09:06 AM
Response to Original message
1. Did you see the article about Planta Centro?
A guy was interviewed at Planta Centro power plant, and he said he sure hopes they get the foreign currency to buy spare parts they need. Oil prices are $80 per barrel, so we should be flooded with cash. What do you think is going on, they gave up on repairing the plant?

I don't think they would be dumb enough to just abandon the power plant, not repair it, when we're so close to the edge. They have to be running out of money. The rating agencies must have some idea that our government is indeed going to run out of money in the future. I've always known these guys are missing a few wires in their heads, but I never thought it would get to this, not with the oil price so high.

You know what else? I think this idea of theirs, buying that refinery in Santo Domingo, is just a bluff. They can't be that dumb.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Mon Dec 29th 2014, 09:00 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Places » Latin America Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC